| 2 | | - | (In the Senate - Filed March 5, 2021; March 18, 2021, read |
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| 3 | | - | first time and referred to Committee on Business & Commerce; |
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| 4 | | - | April 26, 2021, reported favorably by the following vote: Yeas 5, |
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| 5 | | - | Nays 3; April 26, 2021, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to increasing the maximum reference base amount for |
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| 12 | 8 | | certain consumer loans. |
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| 13 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 10 | | SECTION 1. Section 342.251, Finance Code, is amended to |
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| 15 | 11 | | read as follows: |
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| 16 | 12 | | Sec. 342.251. MAXIMUM CASH ADVANCE. The maximum cash |
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| 17 | 13 | | advance of a loan made under this subchapter is an amount computed |
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| 18 | 14 | | under Subchapter C, Chapter 341, using the reference base amount of |
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| 19 | 15 | | $100, except that for loans that are subject to Section 342.259 the |
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| 20 | 16 | | reference base amount is $300 [$200]. |
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| 21 | 17 | | SECTION 2. Section 342.259(a), Finance Code, is amended to |
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| 22 | 18 | | read as follows: |
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| 23 | 19 | | (a) Instead of the charges authorized by Sections 342.201 |
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| 24 | 20 | | and 342.252, a loan made under this subchapter with a maximum cash |
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| 25 | 21 | | advance computed under Subchapter C, Chapter 341, using a reference |
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| 26 | 22 | | base amount that is more than $100 but not more than $300 [$200], |
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| 27 | 23 | | may provide for: |
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| 28 | 24 | | (1) an acquisition charge that is not more than $10; |
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| 29 | 25 | | and |
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| 30 | 26 | | (2) an installment account handling charge that is not |
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| 31 | 27 | | more than the ratio of $4 a month for each $100 of cash advance. |
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| 32 | 28 | | SECTION 3. The changes in law made by this Act apply only to |
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| 33 | 29 | | a loan made on or after the effective date of this Act. A loan made |
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| 34 | 30 | | before the effective date of this Act is governed by the law in |
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| 35 | 31 | | effect on the date the loan was made, and the former law is |
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| 36 | 32 | | continued in effect for that purpose. |
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| 37 | 33 | | SECTION 4. This Act takes effect September 1, 2021. |
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